ERPM Extension

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Early in 2006 DRDGOLD SA was granted prospecting rights under South Africa’s new minerals legislation in respect of the Sallies lease area adjacent to ERPM which is now known as ERPM Extension. A four-year exploration drilling programme is under way.

A concept study to determine how best to access the ERPM Extension 1 orebody was completed in the last quarter of FY08. This favours the development of a new ‘pay-as-you-go’ decline that circumvents the existing decline and uses technology that is proven to be both safer and more reliable. A feasibility study has been approved and is scheduled for completion by the end of 2008.

Once a mining right has been granted for Extension 1, it will allow the Composite Reef payshoot currently being mined on ERPM to be followed across the existing mine boundary. With mineral resources of 7.8 million ounces at 8.35g/t, this project has the potential to extend the life of mine from nine to more than 20 years.

Beyond the Sallies area (ERPM Extension 2), application has been made to extend the prospecting area into the 5 500ha Rooikraal/Withok area where independent consultants (Camden Geoserve and Minxcon) have estimated an inferred resource of 28.6Mt grading 9.06 g/t, a total of 8.3Moz. Should drilling confirm initial estimates, a due diligence exercise will be carried out which could culminate in a deep-level mine with a life of more than 15 years.